Sirius Real Estate has acquired an office complex in Hallbergmoos, near Munich Airport, for €20.2m. The vendor is KCM Invest AG, a Munich based investment firm. Built in 1993, the property provides a total of 19,600m² of net lettable space (16,300m² of office, 2,200m² of warehouse and 1,100m² of other space), over three floors, together with 336 parking spaces on a total plot size of 14,943m².
The asset is 55% let to 28 tenants, producing an annual rental income of €960,000 at an average rate of €6.67 per m² and a remaining WALT of 2.4 years. Tenants include Heinz von Heiden GmbH, Mentor Deutschland GmbH and Dorma Time + Access GmbH. The purchase price (including acquisition costs) reflects an EPRA net initial yield of 3.4% owing to the 45% vacancy in the building.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "This asset fits well with our acquisition criteria, in particular the low capital value, the level of vacancy within the building and the low average rent compared to the local market. It offers a great opportunity to add significant value by playing to the strengths of our integrated business model and track record of maximising occupation and growing rental levels."